Many investors and pundits believe that for marijuana stocks, collaborations with more traditional businesses are a sensible way to gain legitimacy and growth. Perhaps with that in mind, Neptune Wellness (NASDAQ:NEPT) announced last week that it has found such a partner.

The company said it has entered into a relationship with International Flavors & Fragrances (NYSE:IFF) to develop cannabidiol (CBD) products derived from hemp.

In the press release trumpeting the new business arrangement, Neptune wrote that it “aligns well with our growth strategy of expanding core customers and of supporting consumer packaged goods companies and fragrance houses’ expansion into the CBD market.”

International Flavors & Fragrances, as its name promises, specializes in scents and flavors used to enhance food and certain consumer goods products. 

For better or worse, given the recent bearishness on marijuana stocks, the company will now be lumped in with the cannabis sector.

After the announcement, International Flavors & Fragrances stock basically traded sideways over the week. Investors seemed to be more impressed with Neptune’s snagging the deal; its stock was up by slightly more than 5%.

Neither movement was much of a surprise, as the arrangement will potentially affect the smaller Neptune far more than the large and well-capitalized International Flavors & Fragrances.